INVESTMENT GROWS IN SEVEN-YEAR STRETCH
Power Management’s purchase in 2013 and improvements to Siganto Dve commercial centre pay a handsome return
AN investor who paid $2.75 million for a commercial centre overlooking the M1 Motorway at Helensvale seven years ago has sold it for nearly double the amount.
The $5.4 million sale comes after improvements to the property and net income being lifted by a third on the back of a move to full occupancy.
When the centre was bought by
Brisbane-based Geoff Gregory’s Power Management in 2013, three of the 14 tenancies were empty.
The new owner of the 62-64 Siganto Dve property is Wayman, a company associated with Sydney’s Levy family.
It has bought the two-title holding on a 7.65 per cent yield – net annual income is $413,092.
Adam Young, who marketed the property with @realty colleague
James Young, yesterday said the property was sold within days of being put on the market.
“We had more than 70 inquiries, with a healthy contingent of contenders from southern markets,” he said. “The calibre of the property really ticked most of the boxes.”
Mr Young said he handled the late 2012 purchase of the property by Mr Gregory’s Power Management.
“There was a number of vacancies and some rejuvenation was needed.
“With the right leasing and management strategy in place, we were able to significantly improve the performance of the asset.
“In fact, the property has been nearly 100 per cent occupied for the last few years.”
The twin buildings, which sit on a 3992sq m site, are of tilt-panel construction and each houses seven tenancies.
They were developed by Bramwell family company Wedgetail Systems, which bought the land for $480,000 in 1999.
The two-level buildings have net lettable space of 1542sq m and there is on-site parking for more than 50 vehicles. The tenants all are on three- year leases, expiring between mid2020 and 2022, and with renewal options of up to three years.